MariMed Doubles Full Year Revenue and Adjusted EBITDA As It Reports Fourth Quarter and Full Year 2021 Earnings
4:00 pm ET March 16, 2022 (Globe Newswire) Print
MariMed, Inc. (OTCQX: MRMD) ("MariMed" or the "Company"), a leading multi-state cannabis operator focused on improving lives every day, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2021.
FOURTH QUARTER AND FULL YEAR FINANCIAL HIGHLIGHTS
"We are very pleased to deliver another strong year of financial performance for our shareholders, more than doubling our revenue and Adjusted EBITDA," said Bob Fireman, President and Chief Executive Officer of MariMed. "Our validated management team continued to grind it out, staying focused on the financial discipline and operational excellence that has defined our approach. We strengthened an already solid balance sheet through our operating cash flow generation and made great progress across all four pillars of our strategic growth plan."
* Adjusted EBITDA is a non-GAAP measure explained in the section below entitled Non-GAAP Financial Measure, which includes a table showing the adjustments to the Company's net income that results in Adjusted EBITDA.
FOURTH QUARTER AND FULL YEAR OPERATIONAL HIGHLIGHTS
The continued strong financial performance in the fourth quarter of 2021 was driven by:
SUBSEQUENT EVENTS
Subsequent to the end of the 2021 fiscal year, the Company announced several significant business developments, including:
STRATEGIC GROWTH PLAN
Going forward, the Company expects continued strong financial performance through the execution of the four key components of its strategic growth plan: (1) Completing the consolidation of the Company's state cannabis licensed operations it developed and currently manages; (2) Increasing revenues in current cannabis state businesses, by spending capital to increase the capacity at its cultivation and production facilities as well as adding more retail stores; (3) Expanding the Company's footprint into additional legal cannabis states through new license applications and M&A; and (4) Expanding the manufacturing and distribution of its portfolio of leading brands into additional states by licensing to qualified partners or acquiring production and distribution cannabis businesses.
2022 FINANCIAL TARGETS
Considering MariMed's strategic plan to drive long-term growth, recent acquisitions, license wins, and current industry dynamics, the Company has set the following financial targets for the full fiscal year 2022:
"After setting financial targets in 2021 for the first time, and subsequently raising and beating them, I am pleased to announce very strong financial growth targets for 2022," said Jon Levine, Chief Financial Officer of MariMed. "Our strict financial discipline combined with our outstanding operations give us confidence we will meet or beat our full year financial guidance once again in 2022."
CONFERENCE CALL
MariMed management will host a conference call on Thursday, March 17, 2022, to discuss these results at 8:00 a.m. Eastern time. The conference call may be accessed through MariMed's Investor Relations website by clicking the following link: MariMed Q421 Earnings Call.
Earnings Release Tables
Financial Summary: Q421 vs Q420
($US thousands) Q4 2021 Q4 2020 Y/Y Change (%)
(Unaudited)
Revenues $ 31,044 $ 20,357 52%
Gross Profit $ 15,490 $ 11,619 33%
Operating Expenses $ 14,286 $ 3,580 299%
Adj. EBITDA $ 8,262 $ 8,840 -7%
Adj. EBITDA Margin 26.6% 43.4%
Cash Provided By Operations $ 7,930 $ 1,774 347%
Working Capital $ 17,390 $ (2,183) -
NON-GAAP FINANCIAL MEASURE
The Company has provided in this release the non-GAAP financial measure of Adjusted EBITDA as a supplement to Revenues, Gross Profit, and other financial measures prepared in accordance with GAAP.
Management defines Adjusted EBITDA as net income, determined in accordance with GAAP, excluding the following:
Management believes Adjusted EBITDA is a useful measure to assess the performance and liquidity of the Company as it provides meaningful operating results by excluding the effects of expenses that are not reflective of its operating business performance. In addition, the Company's management uses Adjusted EBITDA to understand and compare operating results across accounting periods, and for financial and operational decision making. The presentation of Adjusted EBITDA is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP.
Management believes that investors and analysts benefit from considering Adjusted EBITDA in assessing the Company's financial results and its ongoing business as it allows for meaningful comparisons and analysis of trends in the business. Adjusted EBITDA is used by many investors and analysts themselves, along with other metrics, to compare financial results across accounting periods and to those of peer companies.
As there are no standardized methods of calculating non-GAAP measurements, the Company's calculations may differ from those used by analysts, investors, and other companies, even those within the cannabis industry, and therefore may not be directly comparable to similarly titled measures used by others.
The table below reconciles Net Income (Loss) to Adjusted EBITDA for the three months and full years ended December 31, 2021 and 2020:
EBITDA & ADJUSTED EBITDA RECONCILIATION
Three Months Ended Twelve Months Ended
December 31, December 31,
($US thousands) 2021 2020 2021 2020
(Unaudited)
Net income (loss) $ (6,398) $ 4,212 $ 7,624 $ 2,429
Interest expense, net $ 267 $ 2,194 $ 2,248 $ 9,654
Income taxes $ 7,166 $ 2,067 $ 16,192 $ 2,067
Depreciation and amortization $ 771 $ 534 $ 2,788 $ 2,182
Earnings Before Interest, Taxes and Depreciation & Amortization $ 1,805 $ 9,007 $ 28,852 $ 16,333
Amortization of stock grants $ 2 $ 5 $ 235 $ 21
Amortization of option grants $ 6,286 $ 262 $ 12,494 $ 969
Amortization of stand-alone warrant issuances $ - $ - $ 56 $ 2
Legal settlement $ - $ - $ (267) $ -
Amortization of warrants issued with stock $ - $ - $ 655 $ -
Loss on equity issued to settle obligations $ - $ (80) $ 3 $ 45
Write-down of intangible assets $ - $ - $ - $ 85
Equity in earnings of investments $ - $ - $ - $ (99)
Change in fair value of investments $ 169 $ (355) $ 1,107 $ 350
Adjusted EBITDA $ 8,262 $ 8,840 $ 43,134 $ 17,706
